Regal-Beloit (NYSE: RBC) reported Q2 EPS of $0.95, $0.28 better than the analyst estimate of $0.67. Revenue for the quarter came in at $634.1 million versus the consensus estimate of $645.75 million.

Key financial results for the second quarter 2020 included:

• Total net sales of $634.1 decreased 27.4% from the prior year. Excluding the negative impacts of 1.2% from foreign currency and 1.5% from businesses to be divested/exited, sales declined 24.7% on an organic basis.
• Income from operations was $45.9 million or 7.2% of net sales. Adjusted income from operations declined $34.3 million from a year ago, to $59.5 million. Adjusted operating margin of 9.4% was down 160 basis points versus the prior year's 11.0%.
• Adjusted income from operations deleveraged at 15.5%.
• Net cash provided by operating activities was $86.9 million and capital expenditures totaled $9.5 million, resulting in free cash flow of $77.4 million, which is 255.4% of adjusted net income.
• No shares were purchased in the second quarter, and the Company is currently evaluating when to resume its share buyback program.

Summarizing Regal's second quarter 2020 performance, CEO Louis Pinkham commented, "Regal associates faced unprecedented personal and professional challenges in the quarter tied to COVID-19, including weak demand in many of our end markets, and disruptions to some of our principal manufacturing operations. However, a lot of hard work by our associates, executed with a sense of urgency, enabled our Company to achieve excellent deleverage, and very strong free cash flow. I am impressed by our associates' constant focus on balancing safety with a need to service our customers with Regal's essential products during this uniquely challenging period."

Mr. Pinkham went on to comment, "As I look across our segments, all faced severe, COVID-related end market headwinds that weighed on second quarter sales and, except for PTS, significant disruptions to key manufacturing operations. But despite these obstacles, both PTS and Industrial posted meaningful year-over-year operating profit and margin gains, while Commercial held its deleverage to 20%, and some of our businesses managed to realize market share gains. Climate performance was disappointing, but we believe it was largely due to COVID-related pressures outside our control, leaving us optimistic that much-improved order rates in June and July will translate into materially higher margins for this segment in the second half of 2020."

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